General Questions
All you need to know about OpenMortgage design studio and how to get Support.
With so many interest rates on so many different kinds of loans out there, it is hard to know which is right for you. You shouldn’t take a rate just because it’s low. In fact, a lower rate on the wrong loan can cost you thousands of dollars. That’s why we discuss your financial goals with you and help you access the best rate.
Mortgage Insurance is usually required on a conventional loan any time that the down payment is less than 20% of the sales price (or the appraised value if the appraisal is lower than the sales price) of the property. Premiums vary based on the amount of down payment and credit scores.
Interest rates fluctuate based on a variety of factors, including inflation, the pace of economic growth, and Federal Reserve policy. While interest rates are hard to predict, if you think rates are on an upward trend, you may want to consider locking in your interest rate.
PITI is the acronym (Principal, Interest, Taxes, and Insurance) used to cover what’s included in your monthly payment. Principal is the portion of your payment that goes toward the repayment of the money you borrowed. Interest is the portion of your payment that goes toward the interest you’re being charged on your loan amount. Taxes, Homeowners Insurance, Flood insurance and Mortgage Insurance are the portions of your payment held in an Escrow account to cover those payments when they come due.
Lenders put a portion of your monthly mortgage loan payment into an escrow account – a holding bin of funds to cover your homeowners insurance, flood insurance if applicable, and your property taxes. When these payments are due, the lender pays them from the escrow account on your behalf.
Other Questions
The answers on most common questions are described bellow.
The decision to rent or buy a home differs for everyone, as there are benefits to both. Buying a home could be a better deal for you depending on how long you plan to live in your home and the loan you choose.
A home purchase gives you personal benefits such as a sense of investing in your community and pride for achieving the dream of homeownership. There are some strong financial benefits as well, especially the tax savings you may enjoy. Interest payments on a mortgage are typically tax deductible (consult your tax advisor for more information). As you continue to make mortgage payments, you'll build home equity, as opposed to paying rent to someone else.
Everyone's financial situation differs; it is important to recognize what you can comfortably afford to borrow. In general, the loan amount you can afford depends on your debt-to-income ratio, the amount of cash you have available, your credit history, and the value of the property you are purchasing.
Your down payment requirements will depend on your lender, the type of home loan you choose and the type of property you are buying. Your required down payment can range anywhere from 3%-20% of the home's purchase price. Lenders offer a variety of different loan programs, including low down payment options.
A conforming loan is a mortgage whose amount is under the maximum amount for loans that the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation are legally allowed to buy.
An FHA loan is a loan insured by the Federal Housing Administration (FHA). The FHA is a division of the US Department of Housing and Urban Development (HUD) that insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans.
With the wide variety of loan programs available today, there are many home finance options. With a minimal out-of-pocket cost loan, you'll see immediate reductions in your payments, and you won't have to sacrifice your savings or equity to get a great rate.